Committee hears bill creating Big Sky Rail account to fund passenger‑rail planning; witnesses cite $2M statutory allocation, 8–10 year horizon

Representative Denise Baum introduced House Bill 848 to establish the Big Sky Rail account, a statutory appropriation of the first $2,000,000 of Montana’s rail‑car tax, penalties and interest. The account would be used by the Montana Department of Transportation and the Big Sky Passenger Rail Authority to plan, design and match federal grants needed to restore passenger-rail service along what proponents call the Big Sky North Coast Corridor.

"HB 8 48 establishes statewide revenue fund, the Big Sky Rail account," Baum told the committee and described the bill as a way to reconnect rural communities cut off from long-distance passenger rail since 1979. Supporters included county commissioners, economic developers, chambers of commerce, labor unions and the Big Sky Passenger Rail Authority itself.

Dave Strohmeier, chair of the Big Sky Passenger Rail Authority, told the committee the authority has won federal support — including corridor study participation and an Amtrak partnership that produced a $15 million grant for rail improvements near Malta — and argued the authority needs stable state funding to provide grant administration, nonfederal match and local project development. "We are the only new long distance route in the entire United States in this program," Strohmeier said, describing the authority's role in securing federal funds and coordinating partners.

Witnesses and committee members pressed analysts on finance and timelines. Dan Bucks, who described himself as a former Montana director of revenue and the authority’s development chair, explained that the rail‑car tax currently flows to the state general fund and that HB 848 would redirect the first $2,000,000 annually to the Big Sky Rail account. Online testimony from a Legislative Fiscal Division letter was cited by proponents: projected rail‑car tax receipts were about $3.9 million in 2025, $3.93 million in 2026 and $4.05 million in 2027.

When asked how the money would be used, witnesses said the account is designed for planning, grant writing, project administration and to provide local match for federal programs; it would not cover the large capital costs to restore a long‑distance passenger service. Strohmeier told the committee that the service‑development planning phase (step 2 in the federal pipeline) is expected to cost $10–15 million and that a restored service could be feasible in roughly 8 to 10 years if federal and state matches and environmental reviews proceed. He also told the committee "it would not be inconceivable that this would be upwards of $2,000,000,000" to deploy infrastructure across the roughly 2,300‑mile corridor.

Committee members asked whether Amtrak would operate service, whether other states would contribute and what kinds of station investments would be required; witnesses said Amtrak is a likely operator but not guaranteed, neighboring states and private partners will be sought for matching funds and station solutions could range from small facilities to historic-depot renovations. Representative Baum closed by urging passage and saying the new account aims to help Montana capture federal match dollars and support workforce training and tourism benefits.

The committee closed the hearing and deferred executive action to a later date.